TY - JOUR
T1 - Developing Mobile Application for Land Value Capture Scheme to Finance Urban Rail Transit Projects
AU - Berawi, Mohammed Ali
AU - Suwartha, Nyoman
AU - Salim, Agatha Vania
AU - Saroji, Gunawan
AU - Sari, Mustika
N1 - Funding Information:
This research was funded by the Ministry of Research and Technology, Republic of Indonesia (NKB-034/UN2.RST/HKP.05.00/2021).
Publisher Copyright:
© 2021, International Journal of Technology. All Rights Reserved.
PY - 2021
Y1 - 2021
N2 - Land value capture (LVC) has shown great potential in financing urban rail system infrastructure, such as transit-oriented development (TOD). However, the government of Indonesiahas not tapped this potential in order to close its infrastructure financing gap. This study aims todetermine the incremental rate captured through a tax-based LVC mechanism and develop aproperty market-based mobile application to implement the scheme, with six TOD areas in sevenstations of the Mass Rapid Transit (MRT) Jakarta Phase I project as the case study. This researchused literature and benchmarking studies to collect data, followed by the calculations of thetransport premium, total value increment, and value capture rate for the betterment taximplementation to obtain its research objectives. The results showed that a 5.82% value capturerate could recover 53.8% of the government's initial investment for the project. Based on that figure,betterment tax rates of 0.3% and 0.1% are proposed for residential properties within the radius of100-400 m and 400-700 m from transit stations, respectively. Meanwhile, 2.5% and 2.4% tax ratesare proposed for commercial properties within the radius of 0-300 m and 300-600 m, respectively.Furthermore, the activity workflow for a mobile application in which the government can issue taxinvoices and taxpayers can make payments is also proposed to facilitate the implementation of LVCas an alternative source to finance TOD projects
AB - Land value capture (LVC) has shown great potential in financing urban rail system infrastructure, such as transit-oriented development (TOD). However, the government of Indonesiahas not tapped this potential in order to close its infrastructure financing gap. This study aims todetermine the incremental rate captured through a tax-based LVC mechanism and develop aproperty market-based mobile application to implement the scheme, with six TOD areas in sevenstations of the Mass Rapid Transit (MRT) Jakarta Phase I project as the case study. This researchused literature and benchmarking studies to collect data, followed by the calculations of thetransport premium, total value increment, and value capture rate for the betterment taximplementation to obtain its research objectives. The results showed that a 5.82% value capturerate could recover 53.8% of the government's initial investment for the project. Based on that figure,betterment tax rates of 0.3% and 0.1% are proposed for residential properties within the radius of100-400 m and 400-700 m from transit stations, respectively. Meanwhile, 2.5% and 2.4% tax ratesare proposed for commercial properties within the radius of 0-300 m and 300-600 m, respectively.Furthermore, the activity workflow for a mobile application in which the government can issue taxinvoices and taxpayers can make payments is also proposed to facilitate the implementation of LVCas an alternative source to finance TOD projects
KW - Betterment tax
KW - Land value capture
KW - Mobile application
KW - Transit-oriented development
UR - http://www.scopus.com/inward/record.url?scp=85123536594&partnerID=8YFLogxK
U2 - 10.14716/IJTECH.V12I7.5332
DO - 10.14716/IJTECH.V12I7.5332
M3 - Article
AN - SCOPUS:85123536594
SN - 2086-9614
VL - 12
SP - 1448
EP - 1457
JO - International Journal of Technology
JF - International Journal of Technology
IS - 7
ER -